On January 1, 2017, Pinnacle Corporation exchanged $3,544,000 cash for 100 percent of the outstanding voting stock of Strata Corporation. On the acquisition date, Strata had the following balance sheet $ 124,000 Accounts payable Cash Accounts receivable Inventory Buildings (net) Licensing agreements $ 450,000 2,675,000 1,500,0060 1,315,000 366,000 Long-term debt 430,000 Common stock 1,895,000Retained earnings 3,125,000 $ 5,940,000 $5,940,000 Pinnacle prepared the following fair-value allocation Fair value of Strata (consideration transferred) Carrying amount acquired Excess fair value $ 3,544,000 2,815,000 $ 729,000 to buildings (undervalued) to licensing agreements (overvalued) to goodwill (indefinite life) $ 380,000 (135,000) 245,000 $ 484,000